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A slate of defense industry executives lined up to testify before the House Armed Services Committee Wednesday, telling lawmakers that the automatic budget cuts known as sequestration would be devastating to their businesses and could lead to mass layoffs. The lack of action by Congress, so far, to avert the cuts has led to a "fog of uncertainty" even now, five months away from when sequestration would take effect, the CEO of Lockheed Martin testified.

Lockheed Martin, one of the world's largest defense contractors, has announced a 5 percent workforce reduction at its Mission Systems and Sensors (MS2)business area. The company said it notified 308 of its U.S.-based employees Tuesday "that they will no longer have employment with the company," according to a release.

Linda Gooden, the executive vice president of
the aerospace and technology giant's information
systems and global solutions business area, said
agencies are spending more time than ever
helping contractors understand their needs.
Gooden and Lockheed CEO Robert Stevens'
statements are in stark contrast to comments
made by a major competitor about the challenges
companies face in talking to agencies.

The largest federal contractor is struggling to
prepare for about $1 trillion in cuts that are
due to take effect in January. Retiring-CEO
Robert Stevens said agencies will ask vendors to
modify contracts and that in turn will drive up
the costs of those programs. Lockheed Martin
already is taking steps to reduce its spending
by consolidating facilities and reducing staff.